Financial Crime World

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Financial Institution Fraud Risks in Macao: A Growing Concern

Macao has made significant strides in combating financial institution fraud, with a recent Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation yielding an outstanding result. This achievement is a testament to the concerted efforts of government agencies and private sectors working together to mitigate risks.

Key Areas for Improvement

The evaluation highlighted several key areas where Macao has demonstrated its commitment to preventing financial crimes, including:

  • Stringent Supervision: The gaming sector has been subject to stringent supervision, with a double- scrutiny system in place for junket promoters and their formal collaborators.
  • Risk-Based Supervision: Risk-based supervision has been conducted on concessionaires/sub-concessionaires and junket promoters since 2007.

Supervisory Framework

The Macao Monetary Authority (AMCM) has implemented a risk-based approach in its supervision of the financial sector, incorporating requirements stipulated by the Financial Action Task Force (FATF) Recommendations and Methodology. The authority has also been conducting regular:

  • Onsite and Offsite Supervisions: To ensure compliance with international standards.
  • Thematic Assessments: To identify areas for improvement.
  • Cross-Border Supervisions: To address potential risks in the financial sector.

Designated Non-Financial Businesses and Professions (DNFBPs)

Macao has also been conducting close supervision on DNFBPs, including:

  • Real Estate Intermediaries and Agents
  • Dealers of Precious Metals and Stones
  • Pawn Shops
  • Car Dealers
  • Notaries
  • Professionals such as Accountants, Auditors, and Lawyers

Government Commitment to Improvement

The evaluation also highlighted several areas for improvement, with the government committing to carry out follow-up actions to address these deficiencies. The Macao SAR Government has pledged to:

  • Prioritize Resource Allocation: To strengthen the supervision framework.
  • Progressively Enhance Capacity: Of law enforcement agencies in financial investigation.

Conclusion

In conclusion, Macao’s commitment to preventing financial institution fraud is evident through its concerted efforts and robust measures implemented across various sectors. While there is still room for improvement, the government’s proactive approach is a positive step towards protecting the integrity of its financial systems.